Bit Digital has announced plans to increase its share capital to support further Ethereum purchases, as stated in a recent SEC filing.
Increase in Share Capital
Bit Digital is attempting to triple its authorized share capital by increasing the number of its ordinary shares from 340 million to 1 billion. This decision, if approved by shareholders at a meeting in September, will also raise the total authorized capital from $3.5 million to $10.1 million. The number of preference shares, capped at 10 million, will not change. This expansion is intended to support long-term plans for Ethereum acquisition and overall company growth.
Ethereum Purchase
Recently, Bit Digital demonstrated its intentions to utilize additional capital. On July 18, the company confirmed it had purchased 19,683 ETH using proceeds from a $67.3 million direct offering to institutional investors. The company's total Ethereum holdings now stand at 120,306 ETH, which is worth approximately $450 million based on CoinGecko prices.
Company Strategy and Future
CEO Sam Tabar indicated that the company has shifted its focus from Bitcoin mining to Ethereum, viewing it as foundational to a new financial era. Bit Digital is actively utilizing its Ethereum, operating validators on the Ethereum network and staking most of its ETH, thereby earning yield directly from the network.
Bit Digital is actively developing its strategies around Ethereum, seeing this not only as an opportunity for growth but also as a critical component of its operations in the modern digital financial landscape.
